Which of the following would be a logical consequence of the Private Securities Litigation Reform Act of 1995?
A)Each negligent party is only liable for the portion of damages for which it is responsible
B)Each negligent party could be held liable for the total of damages suffered
C)Auditors have tended to neglect their responsibility of due diligence
D)The threat of private enforcement against accountants has increased

Question

Quizplus · Accepted Answer

The Private Securities Litigation Reform Act of 1995 introduced proportionate liability, meaning each negligent party is only liable for the portion of damages for which it is responsible, rather than joint and several liability.

Which of the Following Would Be a Logical Consequence of the Private